Maryland Automobile Insurance Fund Producer Bond Guide
If you're applying to become an MAI-licensed insurance agent, you're in the right place. This guide will outline how Maryland auto insurance fund producer bonds work and guide you through this critical step of the licensing process.
Bond Overview
- Purpose: To create financial security for anyone harmed by negligent business practices
- Who Needs It: All auto insurance fund producers in Maryland
- Regulating Body: The Maryland Automobile Insurance Fund
- Required Amounts: $10,000
- Premium Rates: $100 for a 1-year term
Read on to learn the ins and outs of the bonding process.
How Much Do Automobile Insurance Fund Producer Bonds Cost?
Automobile insurance producers in Maryland are required to get a $10,000 bond to get a license. The premium for a Maryland automobile insurance fund producer (MAIF) bond is $100. Get your official bond in minutes:
How Do I Get an Auto Producer Bond in Maryland?
SuretyBonds.com offers the quickest and easiest way for Maryland auto insurance producers to get bonded. Follow these three steps:
- Step 1: Purchase your bond on our secure, online portal
- Step 2: Receive your official bond form instantly via email
- Step 3: File the bond with the Maryland Automobile Insurance Fund
What Is an MAIF Bond?
The Maryland Automobile Insurance Fund requires all producers to get a bond as part of the state licensing process. Under Section 20-511 of the Insurance Article, Annotated Code of Maryland, this bond allows the state or customers to file a claim against a producer if they cause financial harm due to negligence or faulty business practices.
How Does a Maryland Auto Fund Producer Bond Work?
A surety bond is an agreement between three parties. Here is what that looks like for a Maryland Automobile Insurance Fund Producer Bond:
- Principal: The automobile insurance fund producer purchasing the bond
- Surety: The surety provider issuing the bond
- Obligee: Maryland Automobile Insurance Fund requiring the bond
How to Become an MAI-Licensed Insurance Agent
To become a Maryland Auto Insurance authorized producer, complete the online application. Before applying, be sure to have the following documents ready to upload:
- Completed W9
- Business license from Maryland Insurance Administration, if applicable
- Producer property and casualty license
- $10,000 producer surety bond
- Banking information for Direct Deposit of Commission
- Completed Maryland Auto Insurance Producer Training
Take the first step by purchasing your surety bond today!
